-The above figure shows the market for finish carpenters in Bozeman.If there is a minimum wage set at $18,which of the following statements is true?
A) Firms' surplus increase with the minimum wage.
B) Workers who retain their jobs have their wages rise.
C) The market is efficient.
D) The quantity supplied of workers is less that quantity demanded.
E) Unemployment decreases because firms employ their workers more carefully.

Question

-The above figure shows the market for finish carpenters in Bozeman.If there is a minimum wage set at $18,which of the following statements is true?
A) Firms' surplus increase with the minimum wage. 
B) Workers who retain their jobs have their wages rise. 
C) The market is efficient. 
D) The quantity supplied of workers is less that quantity demanded. 
E) Unemployment decreases because firms employ their workers more carefully.

Quizplus · Accepted Answer

A minimum wage set above the equilibrium wage causes wages to rise for workers who retain their jobs, but it can also lead to unemployment as the quantity of labor supplied exceeds the quantity demanded.

-The Above Figure Shows the Market for Finish Carpenters in Bozeman.If